"Ultimately, the reason dividend-paying companies are so attractive during market downturns is that they sit in industries that provide essential goods or services. The belief is that their revenues will not collapse when consumers have to cut back, and this allows them to maintain healthy cash flows even during these market downturn times. For investors, you have to choose ETFs built to withstand rate changes, market corrections, and unpredictable, often surprising economic cycles."
"The good news is that you can invest confidently in these stocks as they have a track record of raising dividends for decades, showing they can withstand recessions, inflation cycles, and even sudden market shocks like COVID. These companies also likely benefit from a loyal customer base that allows them to maintain strong pricing power, all while having the right kind of operational discipline to help fund consistent payouts year after year."
Market timing often fails and leaves investors vulnerable during volatility. Dividend-paying companies tend to maintain or raise payouts during downturns, providing steady income independent of share price movements. These firms usually sell everyday products or run predictable operations that support resilient revenues and cash flows. Industries supplying essential goods and services are less likely to see revenue collapse when consumers cut back. Select ETFs that focus on dividend payers and that are structured to withstand interest-rate changes, market corrections, and economic cycles. Many dividend growers have decades-long track records of raising payouts, supported by loyal customers, pricing power, and operational discipline.
Read at 24/7 Wall St.
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